As one might expect, retail product sales are detrimentally impacted by the products simply being unavailable to customers on the sales floor. In some instances, replacement stock may be as nearby as a stock room. However, store personnel may be unaware of out-of-stock conditions on the sales floor, and therefore shelves or other product displays can remain empty for extended periods of time and potential sales can be lost.
The issues involved in the availability of stock to customers on the retail sales floor are commonly referred to as On-Shelf Availability (OSA) issues. Some studies of OSA have shown that many customers will not choose a replacement product when their desired product is not available on the sales floor and those customers may even leave the store without making a purchase. Further, in some instances, customers may not return to the store if the out of stock conditions recur. As such, considering OSA issues and counteracting out-of-stock conditions on the sales floor can lead to improved sales and profits for retailers.
Additionally, retailers can suffer substantial financial losses as a result of retail theft. It is becoming increasingly common for shoplifters and thieves to implement organized and coordinated plans involving multiple individuals to steal large amounts of high priced goods from retail establishments. To protect against such losses, store owners have installed various systems that operate to deter theft through the use of alarms and other prevention mechanisms. However, as thieves become more sophisticated, theft deterrent systems may be circumvented by new techniques and equipment. As such, the technology used for theft prevention must continue to evolve to meet and exceed the increasing sophistication of organized theft techniques.